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A - out of scope
B - Au contraire choice. Because both the speakers should see a drop in funding.
D- No again

C- Tempting choice. This may be the reason that one of the speakers is referring to increased funding in an univ while the other sees a decrease in funding.

E- Another good choice. The reason is this choice can be as Funding = 2/3rd by govt + some through subcontracting work. May be the reason why one of them sees the decreased govt funding while other sees the overall funding having not diminished (as that is coming from the subcontracting work).

I will lean towards E - under the presumption that defence contracts are still 'govt stuff'.

I'm with B. 1min15.
A) does nothing to explain the discrepancy b/w governement grant vs government funding
B) This gives a possible explanation. If grant amounts increased but funding was decreased, and both are mutually exclusive, this could explain how the former could have increased while the latter decreased.
C) same as A
D) out of scope
E) This does not necessarily mean that defense contractors transfered amount in terms of $ has increased. It only says that the proportion increased. What if they used to subcontract 50M out of 500M (10% of their business value) but now subcontract 50M out of 250M (20% of their business value)? _________________

Yes OA is B.
First of all, I could not understand statement I and II . Now, first says that government grant to universities " for scientific research" has increased. Second says that government funding for scientific research has decreased. Now, isnt "government grant to universities for scientific research" the same thing as "government funding for scientific research".
What am i missing here?
I construed that government funds to universities increased but within universities, investing for scientific research decreased and one reason could be increased salaries for technicians as explained by answer choice D.
I think Iam getting confused here because of wording.. ????????